Good Neighbor Pharmacy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$43,797 - $575,205
Min Cash Required
$40,000
Total US Locations
2,468
Business Summary
Good Neighbor Pharmacy Premier Program offers franchises for retail pharmacies that provide prescription services, over-the-counter health and beauty aids, and other complementary services. Good Neighbor Pharmacy Premier Pharmacies operate under the Good Neighbor Pharmacy® trade name and receive business coaching services from AmerisourceBergen Drug Corporation to help improve their operations. Franchisees must also have a distribution agreement with AmerisourceBergen Drug Corporation.
Corporate History
AmerisourceBergen Drug Corporation (ABDC) was formed in Delaware on June 24, 1985, and has been offering franchises under the Good Neighbor Pharmacy Premier Program since 2009. Its parent company, Cencora, Inc., which formed in 2001 (originally as AmerisourceBergen Corporation), is a major global pharmaceutical sourcing and distribution services company. ABDC's history includes acquiring assets from Bergen Brunswig Drug Company in 2002. Cencora has made several other significant acquisitions over the years, including World Courier Group (2012), MWI Veterinary Supply (2015), and a majority of Alliance Healthcare (2021). Before 2019, ABDC also offered a different "Voluntary Pharmacy" license program under the Good Neighbor Pharmacy name, which predates the current GNP Premier Agreement and began in 1982.
Financial Overview
Investment Range
$43,797 - $575,205
Minimum Cash Required
$40,000
Equipment Costs (High)
$260,000
Working Capital
$135,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
AmerisourceBergen Drug Corporation's financial health, as consolidated under its parent company Cencora, Inc., has received an unqualified audit opinion. However, the auditors highlighted significant legal matters and contingencies related to opioid lawsuits and investigations. Cencora has accrued a substantial $4.9 billion liability as of September 2024, which will be paid over 14 years. This liability stems from various settlements and ongoing litigation related to opioid distribution. Additionally, Cencora recognized a $418 million goodwill impairment charge in its PharmaLex reporting unit in fiscal 2024 due to weakening demand, indicating a material negative impact on asset valuation in that area. The company also holds a significant net put option liability of $872.9 million related to its investment in OneOncology and has considerable long-term debt obligations.
Financing Details
AmerisourceBergen Drug Corporation does not provide any direct or indirect financing to its franchisees. The only financing-related assistance is the payment terms included in the franchisee's distribution agreement with AmerisourceBergen Drug Corporation. AmerisourceBergen Drug Corporation also does not guarantee any loans, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
2,468
Franchised Units
2,286
Corporate Units
0
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
10
Litigation Summary
AmerisourceBergen Drug Corporation has been involved in several significant legal matters. Three related civil cases from 2010-2013 regarding alleged False Claims Act violations by a former subsidiary were settled by Cencora (AmerisourceBergen Drug Corporation's parent company) for $625 million. Additionally, AmerisourceBergen Drug Corporation is involved in ongoing large-scale opioid litigation, which includes thousands of lawsuits from governmental entities and tribes. A Distributor Settlement Agreement became effective in April 2022, resolving a substantial majority of these lawsuits across 48 states, for which AmerisourceBergen Drug Corporation's accrued liability was $4.9 billion as of September 2024. Recent developments in this opioid litigation include a February 2024 agreement with the State of Alabama, a November 2024 jury verdict in a Baltimore case for $74 million in compensatory damages, and proposed class action settlements with third-party payors (August 2024) and hospitals (September 2024). A civil complaint filed by the Department of Justice in December 2022 alleges violations of the Controlled Substances Act, specifically that AmerisourceBergen Drug Corporation negligently failed to report suspicious orders, a claim AmerisourceBergen Drug Corporation denies and is vigorously defending. Shareholder securities litigation includes two derivative actions: one filed in October 2019 was dismissed in November 2023 and affirmed on appeal, and another filed in December 2021 is currently stayed pending investigation. Other legal matters include a January 2017 qui tam complaint related to a former subsidiary, which was dismissed in December 2022, and an antitrust complaint filed in December 2019 regarding generic drug price-fixing that was dismissed and refiled. Lastly, a criminal investigation into MWI Veterinary Supply Co., an animal health subsidiary, by the U.S. Attorney's Office, notified in March 2022, reached an agreement in principle in October 2024, resulting in a $49.1 million accrual for AmerisourceBergen Drug Corporation.
Bankruptcy History
AmerisourceBergen Drug Corporation has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
2 years
Renewal Conditions
To renew, Good Neighbor Pharmacy Premier Program franchisees receive automatic two-year renewal terms if they remain in compliance with all program requirements. However, AmerisourceBergen Drug Corporation or the franchisee can choose not to renew by providing 120 days' notice. Franchisees should also be aware that they may be asked to sign a new contract with terms and conditions that are materially different from their original agreement.
Training & Support Program
Franchisor Assistance
AmerisourceBergen Drug Corporation provides extensive assistance to Good Neighbor Pharmacy Premier Program franchisees through various "Available Programs." These include: negotiating Payor Contracts, offering a help desk, and facilitating patient access through the Elevate Provider Network; providing data analytics and performance reports via InSite; supporting front-end retail operations with automatic product shipments, planograms, zone pricing, and optional merchandising services; offering digital marketing tools like a branded website, mobile app, and social media management; and providing business coaching to enhance pharmacy performance. AmerisourceBergen Drug Corporation also helps with pharmacy system data services, including electronic order entry and price updates, and assists with unsaleable product returns. While AmerisourceBergen Drug Corporation does not offer initial site selection or formal initial training, it provides ongoing educational opportunities and maintains an online portal for communication and resources. AmerisourceBergen Drug Corporation also engages in national advertising to promote the Good Neighbor Pharmacy brand.
Ongoing Support
AmerisourceBergen Drug Corporation offers extensive ongoing support to Good Neighbor Pharmacy Premier Program franchisees through a suite of "Available Programs" and resources. This includes continuous assistance with managed care through the Elevate Provider Network (featuring a help desk, Payor contract negotiation, and central payment processing) and data-driven insights from the InSite program for pharmacy performance analysis. Franchisees also receive support for front-end retail operations, including automatic shipments of new products, planograms for optimal layouts, retail product zone pricing, and optional merchandising services. Digital marketing support is provided through a branded website, mobile app, social media resources, and local listing management. Furthermore, AmerisourceBergen Drug Corporation assigns business coaches to assess pharmacy performance, offer recommendations, and help set goals, and provides pharmacy system data services. The program also facilitates unsaleable product returns with processing and destruction services, including on-site assistance and pre-funding for Premier members. Franchisees can access updates and communicate through an online GNP Portal and attend continuing education courses at an annual trade show and via Good Neighbor Pharmacy University.
Franchise Requirements
Ideal Candidate Profile
AmerisourceBergen Drug Corporation seeks franchisees for its Good Neighbor Pharmacy Premier Program who are either existing pharmacy owners or individuals opening a start-up pharmacy. Ideal candidates must already operate under a distribution agreement with AmerisourceBergen Drug Corporation or be willing to establish one. They are required to meet "Premier Minimum Requirements," which include having a pharmacy management computer system compatible with AmerisourceBergen Drug Corporation's InSite program. Franchisees must also appoint a Designated Manager to serve as the primary contact for the business. Additionally, franchisees and their principals must agree to comply with HIPAA regulations.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staffing Notes
AmerisourceBergen Drug Corporation requires Good Neighbor Pharmacy Premier Program franchisees to appoint a Designated Manager who acts as the primary contact with the franchisor. This manager does not necessarily need to be an owner of the business entity. Franchisees must ensure that their Designated Manager and all other employees are informed of their obligations regarding confidential information and compliance with the HIPAA Business Associate Agreement, especially concerning protected health information.